Maintaining Relationships with Contract Manufacturers, Component Suppliers

Avnet Electronics Marketing, Technology Forecasters Inc. offer supply chain services and consulting to mid-tier OEMs

Avnet Electronics Marketing, Technology Forecasters Inc. offer supply chain services and consulting to mid-tier OEMs

Phoenix and Alameda, CA — January 23, 2006 — Avnet Electronics Marketing, an operating group of Avnet Inc., has launched The Avnet Connection, powered by Technology Forecasters Inc.

The Avnet Connection, a joint offering between Avnet Electronics Marketing and Technology Forecasters Inc., is designed to help mid-sized original equipment manufacturers (OEMs) build and maintain global manufacturing relationships with contract manufacturers and component suppliers.

The company said Avnet Connection offers such benefits for subscribers as participation in the company's Global Supply Chain Optimization Workshop, participation in the Global Pricing Workshop, participation in the Quarterly Forum, and access to Avnet's "Support Across the Globe" Network for its complete electronic component bill of materials (BOM).

"When a large OEM outsources manufacturing to a contract manufacturer or original design manufacturers (ODMs) with facilities in a region with low-cost labor, typically they continue to enjoy tremendous leverage with their component suppliers. They have high-volume manufacturing, and procure large quantities of components for several product lines, and therefore are in a position of strength," explained Greg Frazier, executive vice president of global supply chain services for Avnet Electronics Marketing.

He continued, saying that as mid-sized North American or European OEMs embark on the strategic global migration journey, or explore their options, they have a whole different experience than do the large OEMs. He explained that they don't have the size and scale to obtain mindshare with component suppliers, or with contract manufacturers, but they want the same command, control and continuity of their supply chains that they enjoy with their North American or Western European operations. They face significant challenges as they select contract manufacturers and ODMs in so-called low-cost regions — with intellectual property protection, finance, logistics and international trade, he said. The Avnet Connection alliance will help these mid-sized OEMs work through challenges and develop profitable and effective manufacturing relationships."

Pamela Gordon, president of Technology Forecasters Inc., commented, "The challenges related to product design, prototyping, component sourcing, production and end-product distribution, as well as compliance to new global environmental requirements, are daunting even for the largest companies. Mid-sized companies are increasingly challenged to produce and ship products globally in a profitable manner. Gordon added that now mid-sized OEMs can leverage the design and supply chain resources of Avnet Electronics Marketing and the Technology Forecasters Inc. Quarterly Forum community for an advantage.

For more information on the supply chain initiatives underway at Avnet, read the Supply & Demand Chain Executive articles "Architecting Agility" (April/May 2002) and "The World Is Enough" (August/September 2004).